Israeli aircraft struck more than 150 targets in Gaza overnight, and Palestinian militants fired scores of rockets, including a long-range missile, deep into Israel, escalating fighting despite talks on a truce to avert an all-out conflict.

After the Palestinian long-range missile attack, the first of its kind since a 2014 war, Israeli air strikes resumed on Thursday afternoon, flattening a multi-story building that the Israeli military described as a Hamas headquarters.

Israel has fought three wars in the past decade with Hamas, the Islamist group that controls the Gaza Strip. A surge in cross-border rocket and air strikes in recent weeks has prompted the United Nations and Egypt to try to broker a truce to prevent another one.

A pregnant Palestinian woman and her 18-month-old child were killed in the Israeli attacks overnight, as was a Hamas militant, local medical officials said. Hundreds of people took part in the funeral for the woman and child on Thursday.

The Israeli military said seven people were wounded by Palestinian rockets and mortars that hit southern Israel across the border. (Reuters)